Subagency Is Gone in Texas — What That Means for How You Work

by Kelly Bishop, Broker, Rise Realty

As of January 1, 2026, Texas law requires a written agreement with a buyer before an agent performs any act of real estate brokerage on their behalf, and subagency has been eliminated statewide. For agents, that means the paperwork conversation now has to happen before you do anything substantive for a buyer — not at offer time, not "whenever it comes up." If you're evaluating a brokerage right now, this law change is a good lens for judging how much real support you'll actually get day-to-day.

What Changed for Texas Agents Under SB 1968?

Senate Bill 1968 amended the Texas Real Estate License Act at Section 1101.563 of the Texas Occupations Code, requiring a written agreement with a prospective buyer before a license holder performs "any act of real estate brokerage" on their behalf. It also formally eliminated subagency in residential, commercial, and land/farm-and-ranch transactions statewide. Texas Realtors® supported the change, and TREC updated the Information About Brokerage Services form to reflect it. This builds on the NAR practice changes that took effect in August 2024, which already required a signed agreement before touring a home.

Is Subagency Really Gone in Texas?

Yes. Subagency — where a buyer's agent could technically represent the seller instead of the buyer through the listing broker — no longer exists anywhere in Texas real estate practice. For agents, this removes a layer of confusion that used to require extra disclosure language. Every buyer you work with now falls into one of three clear categories: a represented client under a full or limited-service agreement, or an unrepresented customer under the state's new non-representation showing form. There's no more ambiguous middle ground.

What Has to Be in a Written Buyer Agreement Now?

The agreement has to specify the agent's compensation in clear terms — a specific dollar amount, percentage, or hourly rate, not a "to be determined later" placeholder. Compensation is negotiable between agent and buyer; it is not fixed by MLS, NAR, or TREC, and current agreements need to reflect that clearly. You can no longer accept more than the agreed amount even if a seller independently offers more through the listing side. Getting this document right, every time, before showing a home, is now a compliance requirement rather than a best practice.

What Can You Still Do Without a Signed Agreement?

Very little. You can unlock a door and let a buyer walk through a property. That's essentially the boundary. You cannot give advice, discuss pricing strategy, help prepare an offer, or negotiate on a buyer's behalf until the written agreement is signed — even informally, even "just to be helpful." The distinction the law draws is between simple access and "substantive action," and it's a distinction TREC has said it intends to enforce.

The Difference Between "Substantive Action" and Just Opening a Door

If a buyer asks your opinion on a property, asks you to run comps, or asks you to help draft an offer, that's substantive action — the agreement needs to already be signed. Simply providing access to a listing, or answering a factual question that requires no professional judgment (confirming square footage on the listing sheet, for example), generally does not. When in doubt, the safer move is to have the conversation and get the agreement signed before the showing, not during it.

How Does This Affect Newer Agents and Broker Associates?

Newer agents feel this the most, since they're often the ones fielding a buyer's first questions before a real rapport — and a signed agreement — exists. Having a brokerage that hands you a clean, compliant agreement template and walks you through when to use it removes a real source of first-year anxiety. Broker associates and team leads carry additional responsibility here too, since a missed agreement on a team file becomes a broker-level compliance issue, not just an individual one.

How Rise Realty Texas Helps Agents Stay Compliant Without Extra Overhead

This is exactly the kind of law change that makes brokerage support matter. Rise Realty Texas keeps buyer agreement templates, transaction checklists, and file tracking in one place through Paperless Pipeline, so agents aren't building compliance workflow from scratch on their own. Weekly meetings cover contract and compliance updates like this one as they happen, and on-demand coaching is there when a specific buyer situation doesn't fit the standard script. All of this comes without a monthly desk fee — agents on Rise Realty Texas's 100% commission plans pay a per-transaction fee instead, keeping the rest of their commission. See how the programs compare.

Rise Realty Texas is a separately licensed Texas brokerage, not a branch office — but it was built as a Texas expansion of Travis Breton's original 100% commission brokerage model, and Travis remains active in the business today. That track record is part of why the compliance workflow here isn't being built from a blank page.

What Should You Ask a Brokerage Before Switching Right Now?

• Do they provide an actual buyer agreement template, or are you expected to source and vet your own?
• Who reviews your file for compliance before it moves forward — a real person, or nobody?
• Is training on changes like SB 1968 built into a regular schedule, or is it left to you to find out on your own?
• What does switching sponsorship in TREC's REALM Portal actually involve, and will someone walk you through it?

If you're currently sponsored elsewhere and considering a move, switching brokerages doesn't change your Texas license number — you're only updating sponsorship in REALM. Here's the full walkthrough of that process.

Frequently Asked Questions

Do I have to sign a buyer agreement before every showing now?

Yes, for any substantive brokerage activity, including in-person or live-video showings. You can still unlock a door and provide basic access without a signed agreement, but advice, offer prep, and negotiation all require the agreement to be in place first.

Does subagency still exist anywhere in Texas real estate?

No. SB 1968 eliminated subagency across residential, commercial, and land/farm-and-ranch transactions statewide, effective January 1, 2026.

Can a buyer's agent accept more than the agreed compensation if a seller offers more?

No. If the written agreement specifies a compensation amount, the agent cannot accept more than that amount even if the seller independently offers a higher figure through the listing side.

Does switching brokerages change my Texas real estate license number?

No. Your license number stays the same. You're simply updating your sponsoring broker through TREC's REALM Portal.

What's the biggest compliance risk for agents under the new law?

Giving advice, opinions, or negotiation help before the written agreement is signed — even informally. TREC has indicated it intends to enforce the "substantive action" line, so the safest practice is getting the agreement signed before any conversation beyond basic property access.

If you're weighing a move and want to talk through how a brokerage actually supports you through changes like this one, call Rise Realty Texas at (888) 774-7315 or start the conversation at riserealtytexas.com/join.

This article reflects Texas real estate law as of September 2026 and is not legal advice. SB 1968 and TRELA §1101.563 are current as of this writing, but requirements can be clarified or amended — confirm current details with TREC or a real estate attorney before relying on this for your practice. Rise Realty Texas LLC, TREC #9016637-BB.